southern 2006 4th

Southern Company

4th Quarter 2006 Earnings

December 31, 2006

Contents
Press Release 1
Business Outlook 4
Financial Highlights 7
Significant Factors Affecting EPS 7
Analysis of Consolidated Earnings 8
Kilowatt-Hour Sales 8
Financial Overview 9

News

Media Contact: Terri Cohilas
404-506-5333 or 1-866-506-5333
media@southerncompany.com
www.southerncompany.com

Investors: Glen Kundert, 404-506-5135

Jan. 25, 2007

2006 Southern Company earnings bolstered by
strong economy, customer growth
ATLANTA – Citing continued economic strength and a growing customer base in the
Southeast, Southern Company today reported full-year 2006 earnings of $1.57 billion, or
$2.12 a share. Reported earnings for 2005 were $1.59 billion, or $2.14 per share. Lower
year-end earnings compared with the prior period were primarily the result of a reduction
of tax credits related to the production of synthetic fuels. Excluding the impact of
synthetic fuels, Southern Company earned $2.10 per share, up from $2.03 per share in
2005.

Southern Company also reported solid fourth quarter earnings of $188.4 million, or 25
cents a share. This compared with reported earnings of $158.9 million, or 21 cents per
share, in the fourth quarter of 2005.

The region continued to attract new residents and businesses throughout the year, adding
more than 70,000 customers in 2006, an increase of 1.7 percent over 2005. Another key
earnings driver was the growth in the competitive wholesale generation business, which
acquired new capacity in Florida and North Carolina, added to its portfolio of long-term
wholesale contracts, and extended some of its existing contracts. These and other positive
earnings drivers for the year were offset in part by a reduction of tax credits related to the
production of synthetic fuels, higher interest expenses related to increased capital
expenditures, and increased non-fuel operations and maintenance expenses primarily
associated with prior year storm costs at the retail operating companies.

Chairman, President and CEO David M. Ratcliffe said the 2006 results demonstrate that
the continued strength of the Southeast economy and the company’s dedication to serving
the customer are the keys to Southern Company’s long-term financial performance.

“Southern Company remains committed to excellent customer service and satisfaction.
We continue to provide outstanding reliability and customer service in the face of
increasing demand,” Ratcliffe said. “Our ability to effectively manage costs has enabled
us to keep our prices significantly below the national average.”

Fourth quarter revenues were $3.15 billion, compared with $3.29 billion in the same
period a year earlier, a decrease of 4.2 percent. Revenues for the full year were $14.36
billion, compared with $13.56 billion in 2005, a 5.9 percent increase.

Kilowatt-hour sales to retail customers in Southern Company’s four-state service area
increased 1.4 percent in 2006, compared with 2005. Residential energy sales increased
2.5 percent. Commercial energy sales increased 2.2 percent. Industrial energy sales
declined 0.2 percent.

Total energy sales to Southern Company’s customers in the Southeast, including
wholesale sales, increased 2.2 percent in 2006 compared with 2005, primarily due to
customer growth.

In conjunction with this earnings announcement, Southern Company has posted on its
Web site detailed financial information on its fourth quarter and 2006 performance.
These materials are available at 7:30 a.m. Eastern time Jan. 25 at
www.southerncompany.com.

Southern Company’s financial analyst call will be at 1 p.m. Eastern time Jan. 25, at
which time Ratcliffe and Chief Financial Officer Thomas A. Fanning will discuss
earnings and earnings guidance as well as a general business update. Investors, media and
the public may listen to a live Webcast of the call at www.southerncompany.com. A
replay of the Webcast will be available at the site for 12 months.

With 4.3 million customers and more than 41,000 megawatts of generating capacity,
Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving
the Southeast, one of America’s fastest-growing regions. A leading U.S. producer of
electricity, Southern Company owns electric utilities in four states and a growing
competitive generation company, as well as fiber optics and wireless communications.
Southern Company brands are known for excellent customer service, high reliability and
retail electric prices that are significantly below the national average. Southern Company
has received the highest ranking in customer satisfaction among U.S. electric service
providers for seven consecutive years by the American Customer Satisfaction Index
(ACSI). Visit our Web site at www.southerncompany.com.

Forward Looking Statements Note:
Certain information contained in this release is forward-looking information based on current
expectations and plans that involve risks and uncertainties. Forward-looking information
includes, among other things, statements concerning results of operations, customer and
economic growth and Southern Company’s strategies. Southern Company cautions that there are
certain factors that can cause actual results to differ materially from the forward-looking
information that has been provided. The reader is cautioned not to put undue reliance on this

forward-looking information, which is not a guarantee of future performance and is subject to a
number of uncertainties and other factors, many of which are outside the control of Southern
Company; accordingly, there can be no assurance that such suggested results will be realized.
The following factors, in addition to those discussed in Southern Company’s Annual Report on
Form 10-K for the year ended Dec. 31, 2005, and subsequent securities filings, could cause
results to differ materially from management expectations as suggested by such forward-looking
information: the impact of recent and future federal and state regulatory change, including
legislative and regulatory initiatives regarding deregulation and restructuring of the electric
utility industry and implementation of the Energy Policy Act of 2005, and also changes in
environmental, tax and other laws and regulations to which Southern Company and its
subsidiaries are subject, as well as changes in application of existing laws and regulations;
current and future litigation, regulatory investigations, proceedings or inquiries, including the
pending EPA civil actions against certain Southern Company subsidiaries, FERC matters, IRS
audits and Mirant-related matters; the effects, extent and timing of the entry of additional
competition in the markets in which Southern Company’s subsidiaries operate; variations in
demand for electricity, including those relating to weather, the general economy and population
and business growth (and declines); available sources and costs of fuels; ability to control costs;
investment performance of Southern Company’s employee benefit plans; advances in technology;
state and federal rate regulations and the impact of pending and future rate cases and
negotiations, including rate actions relating to fuel and storm restoration cost recovery; the
performance of projects undertaken by the non-utility businesses and the success of efforts to
invest in and develop new opportunities; fluctuations in the level of oil prices; the level of
production, if any, by the synthetic fuel operations at Carbontronics Synfuels Investors LP and
Alabama Fuel Products LLC for fiscal year 2007; internal restructuring or other restructuring
options that may be pursued; potential business strategies, including acquisitions or dispositions
of assets or businesses, which cannot be assured to be completed or beneficial to Southern
Company or its subsidiaries; the ability of counterparties of Southern Company and its
subsidiaries to make payments as and when due; the ability to obtain new short- and long-term
contracts with neighboring utilities; the direct or indirect effect on Southern Company’s business
resulting from terrorist incidents and the threat of terrorist incidents; interest rate fluctuations
and financial market conditions and the results of financing efforts, including Southern
Company’s and its subsidiaries’ credit ratings; the ability of Southern Company and its
subsidiaries to obtain additional generating capacity at competitive prices; catastrophic events
such as fires, earthquakes, floods, hurricanes or other similar occurrences; the direct or indirect
effects on Southern Company’s business resulting from incidents similar to the August 2003
power outage in the Northeast; and the effect of accounting pronouncements issued periodically
by standard-setting bodies. Southern Company and its subsidiaries expressly disclaim any
obligation to update any forward-looking information.

###

2007 Business Outlook

Financial Goals Our Focus in 2007
Earnings Per Share Growth – Near term:
Regular, predictable, sustainable;
Georgia Power retail rate case
average 5% over the long term, with
Capital projects, including a $4.6 billion
annual growth within a 4-6% range
environmental construction program over
2007 Guidance, ex-synfuel: $2.13 to $2.18
the next 3 years
($2.18 to $2.25, including synfuel)
On-going and Long term:
Return on Equity - Top quartile of
electric utilities Continued industry-leading reliability and
customer satisfaction, while maintaining
Dividend Growth – Since 2005,
our low retail prices relative to the
annual growth of approximately 4%.
national average
Long-term growth consistent with a
Meeting increased energy demand with
targeted dividend payout ratio range of
the best economic and environmental
70-75%
choices
Financial Integrity – Achieve an
Continuing to deliver on our value
attractive risk-adjusted return, supported
proposition: superior risk-adjusted total
by a low-risk business model, sound
shareholder return
financial policy, and a stable 'A' credit
rating

Our Major Businesses How We Do Business
Our Four Traditional Operating
SouthernStyle
Companies
Unquestionable Trust
Alabama Power, Georgia Power, Gulf
Superior Performance
Power, Mississippi Power
Over 4.3 million retail electric Total Commitment
customers with expected customer
growth of 1.7% and 2.0% territorial
demand growth
Constructive
Over 35,000 MW of nameplate Healthy Capital
Regulation Spending
generation capacity
Customers
Over 4,300 MW of capacity under
long-term wholesale contracts
Southern Power Company High Reliability
Low Prices
Over 6,700 MW of gas-fired, High Customer
generation capacity Satisfaction

Near-term construction projects
include new units at plants Franklin,
Oleander and Stanton

See caution regarding forward looking statements on page six of this document

2007 Business Outlook
Financial Information

Forecast Data (in billions)
‘07-‘09 Capital Expenditures ‘07-‘09
Sources of Cash New Generation $0.7
Net Operating Cash Flow $11.0 Fossil/Hydro Retrofits 1.0
Common Equity 1.5 Environmental 4.6
Net Debt and Preferred 4.6 Nuclear Fuel & Retrofits 0.7
Total Sources $17.1 Transmission 1.5
Distribution 2.3
Uses of Cash Other/General 0.6
Capital Expenditures $13.2 Traditional Operating Cos $11.4
Common Dividends 3.9 Southern Power 1.6
Total Uses $17.1 Other 0.2
Total $13.2

Senior Unsecured Alabama Georgia Gulf Mississippi Southern Southern
Credit Ratings Power Power Power Power Power Company
S&P A A A A BBB+ A-
Moody’s A2 A2 A2 A1 Baa1 A3
Fitch A+ A+ A AA- BBB+ A

2006 Key Metrics (unaudited, in millions)

Total Net Return on Operating
Revenues Income Avg Equity Cash Flow
Traditional Operating Cos $13,920 $1,462 13.5% $2,549
Southern Company $14,356 $1,573 14.3% $2,825
Total Total Total Common
Assets Debt Pref Stock Equity
Traditional Operating Cos $38,813 $12,440 $744 $11,303
Southern Company $42,848 $15,861 $744 $11,371

See caution regarding forward looking statements on page six of this document

Forward Looking Statements Note

The information contained in this 2007 Business Outlook is forward-looking information
based on current expectations and plans that involve risks and uncertainties. Southern Company
cautions that there are certain factors that can cause actual results to differ materially from the
forward-looking information that has been provided. The reader is cautioned not to put undue
reliance on this forward-looking information, which is not a guarantee of future performance and is
subject to a number of uncertainties and other factors, many of which are outside of the control of
Southern Company; accordingly, there can be no assurance that such suggested results will be
realized.

The following factors, in addition to those discussed in Southern Company’s Annual Report
on Form 10-K for the year ended December 31, 2005, and subsequent securities filings, could
cause actual results to differ materially from management expectations as suggested by such
forward-looking information: the impact of recent and future federal and state regulatory change,
including legislative and regulatory initiatives regarding deregulation and restructuring of the
electric utility industry and implementation of the Energy Policy Act of 2005, and also changes in
environmental, tax and other laws and regulations to which Southern Company and its subsidiaries
are subject, as well as changes in application of existing laws and regulations; current and future
litigation, regulatory investigations, proceedings or inquiries, including the pending EPA civil actions
against certain Southern Company subsidiaries, FERC matters, IRS audits and Mirant-related
matters; the effects, extent and timing of the entry of additional competition in the markets in
which Southern Company’s subsidiaries operate; variations in demand for electricity, including
those relating to weather, the general economy and population and business growth (and
declines); available sources and costs of fuels; ability to control costs; investment performance of
Southern Company’s employee benefit plans; advances in technology; state and federal rate
regulations and the impact of pending and future rate cases and negotiations, including rate
actions relating to fuel and storm restoration cost recovery; the performance of projects
undertaken by the non-utility businesses and the success of efforts to invest in and develop new
opportunities; fluctuations in the level of oil prices; the level of production, if any, by the synthetic
fuel operations at Carbontronics Synfuels Investors LP and Alabama Fuel Products LLC for fiscal
year 2007; internal restructuring or other restructuring options that may be pursued; potential
business strategies, including acquisitions or dispositions of assets or businesses, which cannot be
assured to be completed or beneficial to Southern Company or its subsidiaries; the ability of
counterparties of Southern Company and its subsidiaries to make payments as and when due; the
ability to obtain new short- and long-term contracts with neighboring utilities; the direct or indirect
effect on Southern Company’s business resulting from terrorist incidents and the threat of terrorist
incidents; interest rate fluctuations and financial market conditions and the results of financing
efforts, including Southern Company’s and its subsidiaries’ credit ratings; the ability of Southern
Company and its subsidiaries to obtain additional generating capacity at competitive prices;
catastrophic events such as fires, earthquakes, floods, hurricanes or other similar occurrences; the
direct or indirect effects on Southern Company’s business resulting from incidents similar to the
August 2003 power outage in the Northeast; and the effect of accounting pronouncements issued
periodically by standard-setting bodies. Southern Company and its subsidiaries expressly disclaim
any obligation to update any forward-looking information.

Southern Company Page 7
Financial Highlights
(In Millions of Dollars Except Earnings Per Share)

3 Months Ended December 12 Months Ended December
2006 2005 2006 2005
(Notes) (Notes) (Notes) (Notes)

Consolidated Earnings–As Reported
(See Notes)
$ 128 $ 90 $ 1,292 $ 1,251
Retail Business
71 305
62 270
Competitive Generation
Total 199 152 1,597 1,521
Synthetic Fuels 6 12 12 85
Leasing Business 6 7 22 27
(23) (58)
(12) (42)
Parent Company and Other
$ 188 $ 159 $ 1,573 $ 1,591
Net Income - As Reported

$ 0.25 $ 0.21 $ 2.12 $ 2.14
Basic Earnings Per Share - (See Notes)

$3,152 $3,290 $14,356 $13,554
Operating Revenues
745 742 743 744
Average Shares Outstanding (in millions)
747 742
End of Period Shares Outstanding (in millions)

2006 2005 2006 2005
Consolidated Earnings–Excluding Synfuels
(See Notes)
$ 188 $ 159 $ 1,573 $ 1,591
Net Income - As Reported
(6) (12)
(12) (85)
Less: Synthetic Fuels
$ 182 $ 147 $ 1,561 $ 1,506
Net Income–Excluding Synthetic Fuels

$ 0.25 $ 0.20 $ 2.10 $ 2.03
Basic Earnings Per Share–Excluding Synfuels

Significant Factors Impacting EPS
2006 2005 Change 2006 2005 Change

$ 0.25 $ 0.21 $ 0.04 $ 2.12 $ 2.14 $ (0.02)
Consolidated Earnings–As Reported
(See Notes)
Significant Factors:
0.05 0.06
Retail Business
0.01 0.05
Competitive Generation
(0.01) (0.09)
Synthetic Fuels
(0.01) (0.04)
Parent Company and Other

$ 0.04 $ (0.02)
Total–As Reported

2006 2005 Change 2006 2005 Change

$ 0.25 $ 0.20 $ 0.05 $ 2.10 $ 2.03 $ 0.07
Consolidated Earnings–Excluding Synfuels
(See Notes)
0.04 (0.02)
Total–As Reported
0.01 0.09
Less: Synthetic Fuels
$ 0.05 $ 0.07
Total–Excluding Synthetic Fuels

Notes
- Southern Company GAS completed the sale of substantially all of its assets on January 4, 2006 and is included in consolidated earnings
in all periods as discontinued operations.
- For the fourth quarter 2006 diluted earnings per share was less than 1 cent. For year-to-date 2006, diluted earnings per share was 2 cents.
For the fourth quarter 2005 diluted earnings per share was less than 1 cent. For year-to-date 2005, diluted earnings per share was 1 cent.
- Southern Company's synthetic fuel investments did not contribute significantly to Southern Company's earnings and earnings per share for the three
months and twelve months ended December 31, 2006. Due to higher oil prices in 2006, such tax credits were partially phased out and one
synthetic fuel investment was terminated.
- Certain prior year data has been reclassified to conform with current year presentation.
- Information contained in this report is subject to audit and adjustments and certain classifications may be different from final results published in the Form 10-K.

Southern Company
Analysis of Consolidated Earnings
(In Millions of Dollars)

2006 2005 Change 2006 2005 Change
Income Account-
Retail Revenue $ 2,669 $ (164) $ 11,165 $ 636
$ 2,505 $ 11,801
Wholesale Revenue 429 32 1,667 155
461 1,822
Other Electric Revenues 125 (6) 446 19
119 465
67 268
67 - 276 (8)
Non-regulated Operating Revenues
3,152 14,356
3,290 (138) 13,554 802
Total Revenues
Fuel and Purchased Power 1,391 (160) 5,226 469
1,231 5,695
Non-fuel O & M 1,020 (49) 3,510 9
971 3,519
Depreciation and Amortization 300 4 1,176 24
304 1,200
177 718
175 2 680 38
Taxes Other Than Income Taxes
2,683 11,132
2,886 (203) 10,592 540
Total Operating Expenses
Operating Income 404 65 2,962 262
469 3,224
Other Income, net (26) 31 1 30
5 31
Interest Charges and Dividends 204 36 777 123
240 900
Income Taxes 21 25 595 186
46 781
- (1)
6 (6) - (1)
Discontinued Operations, net of tax

$ 159 $ 29 $ 1,591 $ (18)
$ 188 $ 1,573
NET INCOME AS REPORTED (See Notes)

Kilowatt-Hour Sales
(In Millions of KWHs)

Kilowatt-Hour Sales 2006 2005 Change 2006 2005 Change
(See Notes)
46,954 46,492 1.0% 201,135 196,877 2.2%
Total Sales

36,874 37,518 -1.7% 161,334 159,076 1.4%
Total Retail Sales-
11,031 11,445 -3.6% 52,383 51,081 2.5%
Residential
12,347 12,354 -0.1% 52,987 51,857 2.2%
Commercial
13,273 13,476 -1.5% 55,044 55,141 -0.2%
Industrial
223 243 -8.2% 920 997 -7.6%
Other

10,080 8,974 12.3% 39,801 37,801 5.3%
Total Wholesale Sales

Notes
- Information contained in this report is subject to audit and adjustments and certain classifications may be different from final results
published in the Form 10-K.

Southern Company
Financial Overview
(In Millions of Dollars)

2006 2005 % Change 2006 2005 % Change

Consolidated –
Operating Revenues $3,152 $3,290 -4.2% $14,356 $13,554 5.9%
Earnings Before Income Taxes 234 174 34.5% 2,355 2,186 7.7%
Net Income 188 159 18.6% 1,573 1,591 -1.1%

Alabama Power –
Earnings Before Income Taxes 136 106 28.4% 873 817 6.8%
Net Income Available to Common 80 57 39.7% 518 508 1.9%

Georgia Power –
Earnings Before Income Taxes 105 99 6.2% 1,234 1,195 3.3%

Gulf Power –
Operating Revenues $275 $264 4.4% $1,204 $1,084 11.1%

Mississippi Power –
Operating Revenues $235 $228 2.9% $1,009 $970 4.1%

Southern Power –
Operating Revenues $174 $213 -18.7% $777 $781 -0.5%
Earnings Before Income Taxes 44 44 -0.9% 206 187 10.5%
Net Income Available to Common 27 27 -1.4% 124 115 8.4%

Notes
- Information contained in this report is subject to audit and adjustments and certain classifications may be different from final results
published in the Form 10-K.

southern 2006 4th

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